Rogers Communications has dropped a court challenge in Ontario to get an injunction blocking BCE’s acquisition of wireless communications services provider Glentel.
A news release from BCE Inc. stated that it has come to an agreement with Rogers over control of the wireless phone retailer Glentel Inc.
Under the agreement Rogers and BCE will own 50% of the British Columbia based company.
Last month Bell announced that it would be acquiring Glentel in a deal valued at $670 million.
Rogers was quick to make claims that Glentel failed to obtain approval for the acquisition, a requirement of their agreement.
However, Glentel said it was the decision of its board of directors, and not a supplier, to decide on how the deal would go through.
Glentel CEO Tom Skidmore disputed Rogers’ complaint, saying:
“Rogers has the right to remove their products from our Canadian stores if they choose to terminate its agreement with us, but has no right under its agreement to block the acquisition of Glentel.”
Now a joint venture between the rival firms is underway
Upon closure of the acquisition Bell will divest a 50% stake in Glentel to Rogers, which will make the the company a 50/50 joint venture between the rival firms.
Glentel Inc is an independent retailer of mobile phone services in Canada. It operates almost 500 wireless outlets under brands such as Tbooth Wireless and WirelessWave. It sells services from a number of different carriers, including Bell Mobility and Rogers Wireless.